Raymond Grow III, Bank Fraud, Louisiana 2013

COVINGTON, LA – A Northshore contractor was sentenced to 18 months in federal prison after pleading guilty to bank fraud stemming from a falsified wetlands determination letter used to secure a multi-million dollar loan. Raymond Grow III, 40, of Covington, Louisiana, admitted to creating a fraudulent document that misrepresented the amount of wetlands present on a 22-acre parcel of land in Ponchatula, Louisiana, known as The Landings subdivision.

According to court documents, Grow’s company, Masters Built Construction, LLC, applied for a $3,450,000 loan from First American Bank and Trust in May 2006 to develop The Landings. The loan agreement was personally guaranteed by Grow. A legitimate Wetland Determination letter from the U.S. Army Corps of Engineers was a requirement for loan approval. Instead of obtaining a valid assessment, Grow fabricated a letter by piecing together information from a different, unrelated wetlands report. He then submitted this falsified document to the bank’s closing attorney, enabling the loan to be approved.

The deception remained undetected for years until a prospective buyer of the property began due diligence prior to purchase. During a meeting with the Corps of Engineers, the buyer presented the submitted Wetland Determination letter. Corps officials quickly discovered the letter’s fraudulent nature, finding that the permit numbers cited within the document corresponded to a completely different property. The Corps confirmed they had never conducted a wetland assessment on the 22-acre parcel in question.

Grow was initially charged on December 26, 2012, with making a false statement to a bank. He pleaded guilty on April 24, 2013, to one count of the charge before U.S. District Court Judge Helen G. Berrigan. The prosecution detailed how the false representation allowed Grow to secure funding that would not have been granted had the true wetland conditions been known. The misrepresentation potentially impacted environmental regulations and the integrity of the lending process.

Table of Contents

Key Facts

Defendant: Raymond Grow III
Company: Masters Built Construction, LLC
Loan Amount: $3,450,000
Location: Ponchatula, Louisiana (The Landings subdivision)
Fraudulent Document: Falsified U.S. Army Corps of Engineers Wetland Determination Letter
Charge: Making a false statement to a bank
Sentence: 18 months incarceration and restitution of the loan amount.

The case, prosecuted by U.S. Attorney Dana J. Boente, highlights the serious consequences of defrauding financial institutions and falsifying documents related to environmental regulations. Grow was sentenced on August 14, 2013, and ordered to repay the full loan amount to First American Bank and Trust. He violated Title 18 U.S. Criminal Code, specifically 18 U.S.C. 1014, which carries a maximum penalty of 30 years imprisonment, a $1,000,000 fine, and five years of supervised release. The actual sentence reflected the severity of the crime and the need for restitution.

This case serves as a warning to those who attempt to circumvent environmental regulations or engage in fraudulent practices to obtain financial gain. Federal authorities continue to aggressively investigate and prosecute individuals who compromise the integrity of the financial system and disregard environmental protections.

Source: EPA ECHO Enforcement Case Database

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